Buy-Sell

Often similar in many respects to a key man strategy, the buy-sell provides a multi-owner business with a means to plan for the loss or exit of an owner by implementing a strategy to insure that the remaining owners can acquire the ownership stake held by the former partner. One of the primary benefits of a buy-sell agreement is that the remaining owners are not forced to search for a new buyer or partner to join the business.

Generally relying upon a high cash value life insurance policy these buy-sell agreements can often best be funded using a Leveraged Planning solution. With this approach, the firm is able to use a commercial loan to put in place a plan for business continuity for a group of owners while maintaining a higher level of liquidity than might otherwise exist if the firm were to pay for premiums directly.

GFD is able to help facilitate the design and funding of a life-insurance based buy-sell agreement that can help insure business continuity in the event of unforeseen, potentially-disruptive changes for business owners. GFD’s unique competencies, ability to work with legal and financial advisors, high-touch service, and favorable rates and terms make us the leading choice to fund these mission-critical strategies.